Salem City Council Considering Tax Incentives For Housing Project


Salem City Council is meeting on Monday to discuss the adoption of new neighborhood boundaries and to consider tax incentive requests for two multi-family housing projects, including a 157-unit complex in the old Nordstrom building in the center. city.

The council is considering an application for a multi-unit housing tax incentive program from DD Salem Center Two, LLC, seeking a 10-year property tax exemption for the proposed 157-unit housing project at 420 Center St. NE.

For decades, the program has granted a property tax exemption of up to 10 years for new or converted, non-transitional, transit-compatible multi-family dwellings built in the defined core area that provide one or more public benefits such as the development or redevelopment of an underutilized or degraded property.

A model of the apartment complex under construction at the former Nordstrom site in downtown Salem.

The program provides a tax exemption only for the city’s tax levy, estimated at $ 71,521 in the first full year on the Center Street property.

The City documents cite several public needs met by the property that would qualify it for the program, including offering a wide range of rents, providing open space, developing underutilized and vacant space, and supporting transit.

The $ 25.7 million project in the former Nordstrom building at the Salem Center Mall will involve the demolition of the existing building and its replacement with a five-story mixed-use building.

In June, members of the Salem City Council, at a meeting of the Urban Renewal Agency, approved an exception to the maximum grant amount for the capital improvement grant program for the urban renewal of the center. -City of Riverfront for a total of $ 749,999 for space.

Downtown:$ 25.7M apartment, commercial project replacing the old Nordstrom building

According to city records, the 87,323 square foot building will have 157 apartments and 490 square feet of retail space.

Owners of a two-unit apartment and mixed-use development at 227 Commercial Street NE are also requesting a 10-year property tax exemption under the Collective Housing Tax Incentive Program.

The program provides a tax exemption only for the city’s tax levy, estimated at $ 2,133 in the first full year of ownership.

The city said the property’s historic architectural features dating back to 1867, improvements to the project’s driveways on its western border, and redevelopment of an underutilized property for commercial and residential purposes would qualify it for the program.

Council must also select one of the three options for the new council ward boundaries. Salem is divided into eight wards, with each ward being represented by a city councilor.

After the U.S. Census is completed every 10 years, neighborhood boundaries are adjusted to equalize the population represented by each neighborhood.

Three neighborhood boundary scenarios were prepared for consideration by city council and were discussed at the last meeting. Two open days followed.

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The adoption of the new boundaries means that some residents could soon be reassigned to new neighborhoods for the next election and vote for a different city councilor than they had in the past.

Other items on the agenda include:

  • Presentations of five volunteer recognition awards.

  • Public hearings on annexation initiated by petitioner at 6565 Sunnyside Road SE and 4120 Fisher Road NE.

The meeting is at 6 p.m. It is virtual and can be watched on Comcast Cable CCTV Channel 21 or Salem’s YouTube channel in English / American Sign Language and Spanish.

Written public comments on agenda items can be emailed before 5 p.m. Monday to [email protected]. Or pre-register Monday between 8 a.m. and 2 p.m. at to speak at the meeting via Zoom.

This story includes a report by Natalie Pate.

For questions, comments and topical advice, email reporter Whitney Woodworth at [email protected], call 503-910-6616 or follow us on Twitter @wmwoodworth


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